During the first quarter of 2023, KeyFacts Energy will provide regular updates on energy company capital expenditure plans.

APA Corporation

In 2023, APA plans to invest $2.0 to $2.1 billion in upstream oil and gas capital, which is consistent with the preliminary guidance provided in the third-quarter 2022. This capital investment level is expected to result in year-over-year adjusted BOE growth of 4 to 5%, underpinned by a more than 10% increase in oil volumes.

bp

For 2023 bp expects capital expenditure of $16-18 billion and for 2024-30 now expects capital expenditure in a range of $14-18 billion including inorganic capital expenditure

Callon Petroleum

Callon expects to invest approximately $1 billion in 2023, representing a cash flow reinvestment rate of approximately 60% of 2023 consensus Adjusted EBITDA. Capital investments in 2023 are front-end loaded with approximately 55% - 60% of the total allocated to the first half of the year as multiple, large-scale Permian projects are executed with simultaneous operations of drilling and completion activity. More than 80% of the budget for the year is earmarked for the Permian Basin.

In addition, approximately 5% of the capital budget is anticipated to be invested in emissions reduction projects related to facilities and increased greenhouse gas monitoring. These efforts will further progress towards Callon's emissions reduction goals and also improve lease operating expense. To date, the Company has replaced 75% of its natural gas emitting pneumatics devices and is on track to complete the remainder in 2023. 

Chevron

Chevron plans to spend $17 billion in 2023, up from about $15 billion in 2022.

Chevron’s breakdown for its 2023 budget includes $11.5 billion dedicated to its upstream operations and another $1.9 billion allocated to its downstream business. Additionally, the company has budgeted $2.9 billion in affiliate CAPEX, with nearly half of it going toward its Tengizchevroil’s FGP/WPMP Project in Kazakhstan.

Expenditure includes more than $4 billion for Permian Basin development and roughly $2 billion for other shale and tight assets. More than 20% of the upstream CapEx is for the company’s Gulf of Mexico projects.

The budget also includes about $2 billion to projects that reduce carbon emissions, with about $500 million to projects that lower the carbon intensity of Chevron’s traditional operations and about $1.5 billion to increase renewable fuels production capacity.

CNOOC

CNOOC report capital expenditure will rise to between 100 billion ($14 billion) and 110 billion yuan in 2023, from 100 billion yuan in 2022, to fund an increase in output to between 650 million and 660 million barrels of oil equivalent. Cnooc produced 620 million barrels last year.

ConocoPhillips

ConocoPhillips' 2023 total capital expenditure guidance is $10.7 to $11.3 billion, which includes $9.1 to $9.3 billion for base capital and $1.6 to $2.0 billion for anticipated major project spending at NFE, NFS, PALNG and Willow. Base capital includes funding for ongoing development drilling programs; exploration and appraisal activities; base maintenance; and projects to reduce the company’s Scope 1 and 2 emissions intensity and fund investments in several early-stage low-carbon opportunities that address end-use emissions. 

Denbury

Denbury announced its 2023 capital budget range for oil and natural gas development of $350 million to $370 million, and for carbon capture, utilization, and storage (“CCUS”) capital expenditures of $140 million to $160 million. At the combined midpoint of $510 million (excluding capitalized interest and equity investments), planned capital expenditures are up 19% from 2022, with the increase driven entirely by the CCUS business as the Company plans to enhance its spending on the development of dedicated CO2 storage sites and prepare for expansion of its CO2 pipeline infrastructure.

Devon Energy

For the full-year 2023, Devon expects to sustain production in the range of 643,000 to 663,000 Boe per day. Total capital investment for the year is expected to range from $3.6 billion to $3.8 billion. These capital requirements in 2023 are estimated to be self-funded at pricing levels as low as a $40 WTI oil price.

Diamondback Energy

Diamondback announced full year 2023 cash CAPEX guidance of $2.50 - $2.70 billion and oil production guidance of 256 - 262 MBO/d (430 - 440 MBOE/d).

Earthstone Energy

Earthstone Energy's 2023 capital budget of $725-$775 million assumes a continuous five-rig program consisting of three rigs in the Delaware Basin and two rigs in the Midland Basin. This program is expected to result in the drilling of 82 gross / 62.7 net operated wells and participation in 1.4 net non-operated wells. The Company estimates production for 2023 to average 96,000- 104,000 Boepd (~44% oil).

EnQuest

In response to the changes in the Energy Profits Levy ('EPL'), EnQuest has further optimised its capital programme for 2023, whereby Kraken drilling will be deferred. Cash capital expenditure, excluding acquisitions, is expected to be approximately $160 million.

The planned investment programme includes three infill wells at Magnus and three new wells at Golden Eagle.

For 2023, operating expenditure is expected to be approximately $425 million.

EOG Resources

Total expenditures for 2023 are expected to range from $5.8 to $6.2 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, other property, plant and equipment, and excluding property acquisitions, asset retirement costs and non-cash exchanges. The capital program also excludes certain exploration costs incurred as operating expenses.

The disciplined capital program is allocated across EOG’s high-return, multi-basin drilling portfolio. It is anchored by steady development in the Delaware Basin, with increased activity focused on the Eagle Ford and on EOG’s emerging premium plays - the Powder River Basin, South Texas Dorado and Ohio Utica Shale.

About $4.4 billion of the capital program is allocated to EOG’s existing and emerging premium areas. The capital program also funds investment in international plays, high-potential exploration and environmental and infrastructure projects. 

Equinor

Equinor expects organic capex of USD 10-11 billion in 2023, and an annual average of around USD 13 billion for 2024-2026.

Europa Oil & Gas

The Europa Board has approved a 2023 budget which includes net committed capex of £5.1 million across the asset base. The Company has a forecast net cash position of £4.6 million at 31 January 2023. In addition, it forecasts that it will generate £4.2 million in free cash flow during 2023 (pre-capex). 

ExxonMobil

ExxonMobil reported its corporate plan through 2027 maintains annual capital expenditures between $20 billion and $25 billion, with about $17 billion planned for lower-emission initiatives. The plan is expected to double earnings and cash flow potential by 2027 vs. 2019 and supports the company’s strategic priorities.

The company's 2023 investments are expected to range between $23 billion and $25 billion to help increase supply to meet global demand.

Genel

Genel plan a material reduction in capital expenditure, with 2023 expenditure expected to be between $100 million and $125 million, with key asset spend including: 

• Production business cost recoverable capital expenditure roughly flat at c.$90 million 
• Up to c.$25 million expenditure in Somaliland, as we progress towards the spudding of the Toosan-1 well in this frontier basin
• c.$10 million currently expected on maintenance of other assets including Sarta, a reduction of c.$50 million on 2022

Gulf Keystone

Gulf Keystone has set a 2023 net capital expenditure guidance of $160-$175 million:

• $30-$35 million: Completion of SH-17, drilling of SH-18 and well workover programme to optimise production
• $45-$50 million: Long lead items and preparing well pads to enable continuous drilling beyond SH-18
• $85-$90 million: Continued expansion of production facilities, targeting by H2 2024 an increase in total field capacity from c.60,000 bopd currently to 85,000 bopd and installation of water handling capacity, potentially enabling the increase in production rates from constrained wells
• Opex guidance of $3.0-$3.4/bbl, underpinned by the Company’s continued focus on strict cost control

Harbour Energy

Total capital expenditure of c.$1.1 billion, including c.$0.2 billion decommissioning, split 85 per cent UK / 15 per cent international.

• UK capital expenditure focused on high return, lower risk, infrastructure-led investment opportunities including Tolmount East and Talbot development drilling, Callanish F6 infill well, Leverett appraisal and the Jocelyn South exploration well.
• Total UK capital expenditure reduced compared to previous expectations with certain opportunities no longer being pursued following the changes to the EPL announced in November, including the Total-operated EIH well at Elgin Franklin and participation in the 33rd Licensing round.
• International capital expenditure largely comprised of further exploration drilling across our Andaman Sea licences.

Hess

Hess Corporation announced a 2023 Exploration & Production capital and exploratory budget of $3.7 billion, of which more than 80% will be allocated to Guyana and the Bakken.

Net production is forecast to average between 355,000 and 365,000 barrels of oil equivalent per day in 2023. Bakken net production is forecast to average between 165,000 and 170,000 barrels of oil equivalent per day and Guyana net production is forecast to average approximately 100,000 barrels of oil per day in 2023.

The $3.7 billion budget is allocated as follows: $1.45 billion (39%) for production, $1.7 billion (46%) for offshore Guyana developments and $550 million (15%) for exploration and appraisal activities.

i3 Energy

i3 Energy's 2023 Capital Budget of USD 64.05 million is, forecast to deliver 23 gross wells (15.2 net, 70% net i3-operated) to be drilled across the Company’s diversified portfolio in Central Alberta, Simonette, Wapiti and its northern Clearwater acreage.

Forecast 2023 annual average production of 22,250 – 23,000 boepd, represents a year-over-year increase of approximately 10% – 13%, with an expected 2023 peak production rate of approximately 26,000 boepd.

Kosmos Energy

Kosmos expects to spend $700-$750 million in capital expenditures in 2023. Around $250-$300 million of the budget is related to maintenance activities across the producing assets in Ghana, Equatorial Guinea and the U.S. Gulf of Mexico with around $350-$400 million related to the company's three development projects (Jubilee Southeast, Tortue Phase 1 and Winterfell). Between $50-$100 million will be used on our ILX activities in the U.S. Gulf of Mexico and Equatorial Guinea as well as the appraisal of our greater gas resources in Mauritania & Senegal.

Murphy Oil

Murphy Oil's 2023 CAPEX plan is expected to be in the range of $875 million to $1.025 billion. Full year 2023 production is expected to be in the range of 175.5 to 183.5 MBOEPD, consisting of approximately 99 MBOPD oil and 109 MBOEPD liquids volumes, equating to 55 percent oil and 61 percent liquids volumes, respectively. This reflects a 10 percent increase in oil volumes and 7 percent increase in total volumes from full year 2022.

Murphy plans to spend approximately $335 million of 2023 CAPEX in the Gulf of Mexico for development drilling and field development projects, including executing three operated subsea tiebacks and three non-operated subsea tiebacks, and advancing the non-operated St. Malo waterflood project prior to its completion in early 2024.

Murphy has allocated $325 million of 2023 CAPEX to the Eagle Ford Shale. This includes $250 million to drill 25 wells and bring online 35 operated wells, as well as drill 11 wells and bring online 17 non-operated wells. The remaining $75 million is allotted to support field development.

The company plans to spend $130 million of its 2023 CAPEX in Canada onshore. Approximately $100 million is allocated to the Tupper Montney to drill 14 wells and bring online 16 operated wells, and the remaining $30 million supports field development in Tupper Montney and Kaybob Duvernay.

Approximately $30 million of CAPEX is allocated to Canada offshore, with $18 million for non-operated Hibernia development drilling, as well as $12 million for non-operated Terra Nova for field development ahead of returning to production in the second quarter 2023.

Murphy has allocated $100 million to its 2023 exploration program, with the majority of spending designated for drilling operated exploration wells in the Gulf of Mexico.

Neptune Energy

Neptune Energy has set 2023 guidance for development capex of ~$450 million and exploration and pre-development spend of ~$200 million and an increase in spend on lower carbon projects.

The company will focus on shorter cycle projects and near-term returns and maturing new growth projects in Norway, the Netherlands and Indonesia.

Exploration wells to be drilled at Cerisa, Yakoot and Geng North in 2023.

Northern Oil & Gas

NOG currently expects total capital spending in the range of $737 - $778 million for 2023 with approximately 46% of its 2023 budget to be spent on the Williston, 53% on the Permian, and de minimis capital on the Appalachian and other.

Panoro Energy

Expenditure on capital and other non-recurring projects in 2023 is expected to be approximately USD 75 million and includes approximately USD 5 million associated with long lead items and planning for 2024 drilling activities. The majority of planned 2023 expenditure is associated with the production drilling campaign at the Hibiscus Ruche Phase I development offshore Gabon and infill drilling campaign at Block G offshore Equatorial Guinea

Parex

Capital expenditures set at approximately $450 million (midpoint), which is roughly 18% lower compared to 2022. This demonstrates the Company’s commitment to capital discipline in a lower netback environment, while ensuring strong free funds flow generation that is to be returned to shareholders.

Approximately 75% of total capital is focused on investments in operated blocks, with balanced deployment across multiple areas and basins as the Company further diversifies its operations from Southern Llanos Blocks LLA-34 and Cabrestero.

• Average production is expected to be between 57,000 to 63,000 boe/d, and forecast to be approximately 15% year-over-year absolute growth (midpoint).
• Capital plan includes the spudding of three big ‘E’ wells (Blocks: Arauca, VIM-43 and LLA-122) that have the potential to be transformational opportunities for the Company.

Approximately $45 million of capital expenditures relate to carry capital from the Arauca and LLA-38 farm-in agreement with Ecopetrol S.A., whereby Parex agreed to solely fund the initial work plan in exchange for proved reserves along with development and drill-ready exploration prospects.

PGS

PGS expects full year 2023 gross cash costs to be approximately $550 million. The increase from 2022 is primarily due to the higher activity level and more capacity in operation.

2023 MultiClient cash investments are expected to be approximately $160 million.

Pioneer Natural Resources

The Company expects its 2023 drilling, completions, facilities and water infrastructure capital budget to range between $4.45 billion to $4.75 billion. Additionally, the Company expects its capital budget for exploration, environmental and other capital to range between $150 million to $200 million, principally related to drilling four Barnett/Woodford formation wells in the Midland Basin, additional testing of the Company’s enhanced oil recovery (EOR) project and adding electric power infrastructure for future drilling, completions and production operations. Pioneer expects its capital program to be funded from 2023 cash flow, which is projected to be approximately $9 billion.

Plains All American

Plains All American anticipates full-year 2023 Investment and Maintenance Capital of $325 million and $195 million.

Ring Energy

For full year 2023, Ring expects total capital spending of $135 million to $170 million that includes a balanced and capital efficient combination of drilling Hz wells on legacy acreage and vertical wells on the recently acquired CBP assets, as well as performing recompletions. Additionally, the full year capital spending program includes funds for targeted capital workovers, infrastructure upgrades, leasing costs, and non-operated drilling, completion, and capital workovers.

Tethys Oil

Tethys Oil expects operating expenditures to be USD 14.5 per barrel (+/- 1.0 per barrel) in 2023. The expected level of operating expenditure per barrel reflects the expected production guidance range together with cost levels on par with or slightly higher than 2022.

Investments: Tethys Oil's total investments in oil and gas properties in 2023 is expected to amount to MUSD 85-95. The range is on par with the 2022 investments in oil and gas properties of MUSD 89 spread across the Blocks. The 2023 investments in oil and gas properties are expected to be funded by the Group's cash flows as well as cash on hand.

Investments on Blocks 3&4 are expected to be MUSD 65-75 (2022: MUSD 63.4). The expenditure reflects increased spending on drilling, a total of 47 new wells compared to 36 in 2022, as well as increased facility investments for power generation and produced water handling. The range denotes uncertainty related to spending driven by exploration success and the ability to fulfil facility upgrade plans given supply chain constraints.

2023 spending on Block 49 is expected to be MUSD 1.5 (2022: MUSD 0.4) with expenditure related to the re-entry and re-testing of the Thameen-1 well.

On Block 56, Tethys Oil's 2023 investments, including carry arrangements, is expected to amount to a total of MUSD 8.0 (2022: MUSD 23.8) relating mainly to the drilling of an exploration well in the central area of the Block during the second half of 2023.

On Block 58 Tethys Oil's 2023 investments are expected to amount to MUSD 10.5 (2022: MUSD 1.4) relating primarily to the drilling of an exploration well at the beginning of Q3 2023.

TotalEnergies

In 2023, TotalEnergies expects net investments of $16-18 billion, including $5 billion dedicated to low-carbon energies. 

Tullow

In 2023, Tullow plans to invest c.$400million, of which c.$300 million in Ghana (primarily in Jubilee, including over $100 million in infrastructure), c.$40 million in Gabon, c.$20 million in Côte d’Ivoire, c.$10 million in Kenya and c.$30 million on exploration and appraisal activities. This is an increase of c.$50 million compared to 2022 as a consequence of deferrals from 2022, increased equity in Ghana for the full year, and ongoing infrastructure investment in Jubilee South East, which will account for c.40% of Ghana capital spend in 2023.

Decommissioning expenditure is expected to be c.$90 million in the UK and Mauritania, including deferrals from 2022, with less than $30 million of decommissioning liabilities in the UK and Mauritania remaining at the end of 2023. Additionally, starting in 2023, c.$30 million is expected to be paid annually into escrow for future decommissioning of currently producing assets in Ghana and parts of the non-operated portfolio.

Capital investment in 2023, in particular in Ghana, is expected to support production growth through to 2025 and free cash flow generation of $700-800 million at 80/bbl for the two years 2024 and 2025 based on 2P reserves only, which will further reduce net debt and strengthen Tullow’s balance sheet.

United Oil & Gas

Group cash capital expenditure for the full year is forecasted to be approx. $4.4m, funded from existing operations, with circa $4m to be invested in Egypt and up to $0.4m across the other assets in the portfolio.

W&T Offshore

W&T’s capital expenditure budget for 2023 is expected to be in the range of $90 million to $110 million, which excludes acquisition opportunities. Included in this range are planned expenditures related to long-lead items, front-end engineering design and other work for one deepwater well and three shelf wells that may be drilled later this year, as well as capital costs for facilities, leasehold, seismic, and recompletions. The Company has significant flexibility to adjust its spending since it has no long-term rig commitments or near-term drilling obligations.

Plugging and abandonment expenditures are expected to be in the range of $25 million to $35 million. The Company spent $76.2 million on asset retirement obligation settlements in 2022, driven by obligations and prior deferrals on terminated leases with U.S. Bureau of Safety and Environmental Enforcement deadlines before year-end 2022.

Woodside

Woodside’s capital expenditure guidance for 2023 is $6.0 – 6.5 billion, while their exploration expenditure guidance is $0.3 – 0.4 billion

KeyFacts Energy: CapEx news

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